Day: May 14, 2014

Our Efficient Market Theory

At Smead Capital Management, we have our own Efficient Market Theory. Ben Graham observed and Warren Buffett repeated, “The stock market has a very efficient way of transferring wealth from the impatient to the patient.” We would add that over ten to twenty years the stock market moves money “efficiently from the those who over-think the stock market to those who don’t.” In this missive we will explain why we believe the patient benefit at the expense of the impatient and why those who over-think the stock market are incredibly inefficient and move their money to those with less complicated views on finance.

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